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Actionable news in NTGR: NETGEAR, Inc.,

NETGEAR: San Jose, California -

The following excerpt is from the company's SEC filing.

April 27, 2016

NETGEAR, Inc. (NASDAQ: NTGR), a global networking company that delivers innovative products to consumers, businesses and service providers, today reported financial results for the

quarter ended

April 3, 2016

Net revenue for the

$310.3 million

, as compared to

$309.2 million

in the

March 29, 2015

, and

$360.9 million

fourth

December 31, 2015

Net income, computed in accordance with GAAP, for the

quarter of

$16.6 million

net income per diluted share. This compared to GAAP net income of

$8.0 million

net income per diluted share, in the

, and GAAP net income of

$21.8 million

. Non-GAAP net income was

per diluted share in the

, as compared to non-GAAP net income of

Operating margin, computed in accordance with GAAP, for the

in the year ago comparable quarter, and

. Non-GAAP operating margin was

The differences between GAAP and non-GAAP financial measures include adjustments, net of any tax effect, for amortization of intangibles, stock-based compensation expense, restructuring and other charges, losses on inventory commitments due to restructuring, litigation reserves, net, and gain on litigation settlements. The accompanying schedules provide a reconciliation of financial measures computed on a GAAP basis to financial measures computed on a non-GAAP basis.

Patrick Lo, Chairman and Chief Executive Officer of NETGEAR, commented, “We were pleased with our financial results for the first quarter of 2016, which came in slightly above the high end of our guidance for revenue and significantly above our guidance for operating margin. The Retail Business Unit and Commercial Business Unit both met our expectations, while the Service Provider Business Unit's revenue came in above what we had expected. Overall, our first quarter results reflect a strong start to the year for the Company.”

Mr. Lo continued, “During the quarter we saw continued strength in North America, positive year-over-year and sequential growth in APAC, while EMEA was challenged primarily due to the step down in Service Provider revenue."

Christine Gorjanc, Chief Financial Officer of NETGEAR, added, "During the first quarter of 2016, we continued to be opportunistic buyers of NETGEAR equity and repurchased approximately 280,000 shares of common stock, which makes our total repurchase amount since Q4 2013 approximately 8.9 million shares. We continue to believe that stock repurchases are an effective way of returning capital to shareholders, and plan to be opportunistic buyers of our stock in the coming quarters.”

Ms. Gorjanc continued, "Looking forward to the second quarter of 2016, we expect net revenue to be in the range of $290 million to $305 million. Our revenue outlook reflects seasonality for the Retail Business Unit, and the previously announced $75 million quarterly revenue run rate for the Service Provider Business Unit. Non-GAAP operating margin is expected to be in the range of 9.5% to 10.5%. Our non-GAAP tax rate is expected to be approximately 34% for the second quarter of 2016.”

Investor Conference Call / Webcast Details

NETGEAR will review the

quarter results and discuss management's expectations for the

quarter of 2016 today, Wednesday,

at 5 p.m. ET (2 p.m. PT). The dial-in number for the live audio call is (201) 689-8471. A live webcast of the conference call will be available on NETGEAR's website at http://investor.netgear.com. A replay of the call will be available 2 hours following the call through midnight ET (9 p.m. PT) on Wednesday, May 4, 2016 by telephone at (858) 384-5517 and via the web at http://investor.netgear.com. The account number to access the phone replay is 13635155.

About NETGEAR, Inc.

NETGEAR (NASDAQ: NTGR)

s a global networking company that delivers innovative products to consumers, businesses and service providers. The Company's products are built on a variety of proven technologies such as wireless (WiFi and LTE), Ethernet and powerline, with a focus on reliability and ease-of-use. The product line consists of wired and wireless devices that enable networking, broadband access and network connectivity. These products are available in multiple configurations to address the needs of the end-users in each geographic region in which the Company's products are sold. NETGEAR products are sold in approximately

28,000

retail locations around the globe, and through approximately

31,000

value-added resellers, as well as multiple major cable, mobile and wireline service providers around the world. The company's headquarters are in San Jose, Calif., with additional offices in approximately

countries. More information is available at http://investor.netgear.com or by calling (408) 907-8000. Connect with NETGEAR at

and http://www.facebook.com/NETGEAR.

© 2016 NETGEAR, Inc. NETGEAR and the NETGEAR logo are trademarks or registered trademarks of NETGEAR, Inc. and its affiliates in the United States and/or other countries. Other brand and product names are trademarks or registered trademarks of their respective holders. The information contained herein is subject to change without notice. NETGEAR shall not be liable for technical or editorial errors or omissions contained herein. All rights reserved.

Contact:

NETGEAR Investor Relations

Christopher Genualdi

netgearIR@netgear.com

(408) 890-3520

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 for NETGEAR, Inc

This press release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. The words “anticipate,” “expect,” “believe,” “will,” “may,” “should,” “estimate,” “project,” “outlook,” “forecast” or other similar words are used to identify such forward-looking statements. However, the absence of these words does not mean that the statements are not forward-looking. The forward-looking statements represent NETGEAR, Inc.’s expectations or beliefs concerning future events based on information available at the time such statements were made and include statements regarding: expected net revenue, non-GAAP operating margin and tax rates; expectations regarding the timing, distribution, sales momentum and market acceptance of recent and anticipated new product introductions that position the Company for growth; expectations regarding seasonal changes in the Company’s business unit performance; and expectations regarding repurchases of the Company’s common stock. These statements are based on management's current expectations and are subject to certain risks and uncertainties,

including the following: future demand for the Company's products may be lower than anticipated; consumers may choose not to adopt the Company's new product offerings or adopt competing products; product performance may be adversely affected by real world operating conditions; the Company may be unsuccessful or experience delays in manufacturing and distributing its new and existing products; telecommunications service providers may choose to slow their deployment of the Company's products or utilize competing products; the Company may be unable to collect receivables as they become due; the Company may fail to manage costs, including the cost of developing new products and manufacturing and distribution of its existing offerings; the Company may fail to successfully continue to effect operating expense savings; changes in the level of NETGEAR's cash resources and the Company's planned usage of such resources, including potential repurchases of the Company’s common stock; changes in the Company's stock price and developments in the business that could increase the Company's cash needs; fluctuations in foreign exchange rates; and the actions and financial health of the Company's customers. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. Further information on potential risk factors that could affect NETGEAR and its business are detailed in the Company's periodic filings with the Securities and Exchange Commission, including, but not limited to, those risks and uncertainties listed in the section entitled “Part I - Item 1A. Risk Factors,” pages 10 through 30, in the Company's annual report on Form 10-K for the fiscal year ended December 31, 2015, filed with the Securities and Exchange Commission on February 19, 2016. NETGEAR undertakes no obligation to release publicly any revisions to any forward-looking statements contained herein to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Use of Non-GAAP Financial Information:

To supplement our consolidated financial statements presented on a GAAP basis, NETGEAR uses non-GAAP financial measures, which are adjusted to exclude certain expenses and tax adjustments, where applicable. We believe non-GAAP financial measures are appropriate to enhance an overall understanding of our past financial performance and also our prospects for the future. These adjustments to our current period GAAP results are made with the intent of providing both management and investors a more complete understanding of NETGEAR's underlying operational results and trends and our marketplace performance. For example, the non-GAAP results are an indication of our baseline performance before charges that are considered by management to be outside of our core operating results. In addition, these adjusted non-GAAP results are among the primary indicators management uses as a basis for our planning and forecasting of future periods. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial measures prepared in accordance with generally accepted accounting principles in the United States.

Source: NETGEAR-F

-Financial Tables Attached-

NETGEAR, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)

ASSETS

Current assets:

Cash and cash equivalents

226,858

181,945

Short-term investments

106,446

96,321

Accounts receivable, net

218,421

290,642

Inventories

215,307

213,118

Prepaid expenses and other current assets

35,431

39,117

Total current assets

802,463

821,143

Property and equipment, net

20,687

22,384

Intangibles, net

44,703

48,947

Goodwill

81,721

Other non-current assets

75,677

76,374

Total assets

1,025,251

1,050,569

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

75,134

90,546

Accrued employee compensation

21,571

27,868

Other accrued liabilities

148,018

166,282

Deferred revenue

26,399

29,125

Income taxes payable

Total current liabilities

274,753

315,772

Non-current income taxes payable

14,694

14,444

Other non-current liabilities

11,439

11,643

Total liabilities

300,886

341,859

Stockholders' equity:

Common stock

Additional paid-in capital

522,953

513,047

Accumulated other comprehensive income (loss)

Retained earnings

201,860

195,627

Total stockholders' equity

724,365

708,710

Total liabilities and stockholders' equity

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share and percentage data)

Three Months Ended

310,256

360,863

309,157

Cost of revenue

209,691

255,447

220,877

Gross profit

100,565

105,416

88,280

Gross margin

Operating expenses:

Research and development

22,137

23,373

20,452

Sales and marketing

37,277

39,256

37,602

General and administrative

12,849

12,121

11,023

Restructuring and other charges

Litigation reserves, net

(2,690

Total operating expenses

74,951

74,772

70,781

Income from operations

25,614

30,644

17,499

Interest income

Other income (expense), net

Income before income taxes

25,482

30,734

18,026

Provision for income taxes

10,015

16,589

21,807

Net income per share:

Diluted

Weighted average shares used to compute net income per share:

32,519

32,275

34,678

33,269

33,110

35,285

RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES

(In thousands, except percentage data)

STATEMENT OF OPERATIONS DATA:

GAAP gross profit

Amortization of intangibles

Stock-based compensation expense

Losses on inventory commitments due to restructuring

Non-GAAP gross profit

103,398

108,186

91,773

Non-GAAP gross margin

GAAP research and development

Non-GAAP research and development

21,271

22,417

19,607

GAAP sales and marketing

(1,771

(1,806

(1,197

(1,184

(1,393

Non-GAAP sales and marketing

34,309

36,301

34,403

GAAP general and administrative

(1,909

(1,792

(1,614

Non-GAAP general and administrative

10,940

10,329

GAAP total operating expenses

(3,972

(3,932

(3,852

(2,678

(4,394

Non-GAAP total operating expenses

66,520

69,047

63,419

RECONCILIATIONS OF GAAP MEASURES TO NON-GAAP MEASURES (CONTINUED)

STATEMENT OF OPERATIONS DATA (CONTINUED):

GAAP operating income

Non-GAAP operating income

36,878

39,139

28,354

GAAP other income (expense), net

Gain on litigation settlements

Non-GAAP other income (expense), net

Tax effect

(3,243

(2,800

(2,571

24,605

27,502

16,295

(In thousands, except per share data)

NET INCOME PER DILUTED SHARE:

GAAP net income per diluted share

Non-GAAP net income per diluted share

SUPPLEMENTAL FINANCIAL INFORMATION

(In thousands, except per share data, DSO, inventory turns, weeks of channel inventory, headcount and percentage data)

September 27,

June 28,

Cash, cash equivalents and short-term investments

333,304

278,266

263,848

212,915

247,405

Cash, cash equivalents and short-term investments per diluted share

274,173

246,493

254,745

Days sales outstanding (DSO)

170,013

188,668

200,948

Ending inventory turns

Weeks of channel inventory:

U.S. retail channel

U.S. distribution channel

EMEA distribution channel

APAC distribution channel

Deferred revenue (current and non-current)

29,732

33,331

34,154

31,116

25,802

Headcount

Non-GAAP diluted shares

32,335

34,308

NET REVENUE BY GEOGRAPHY

Americas

193,850

231,765

173,786

64,505

86,887

89,109

51,901

42,211

46,262

NET REVENUE BY SEGMENT

157,543

197,520

120,957

68,432

63,911

72,731

84,281

99,432

115,469

The above information was disclosed in a filing to the SEC. To see the filing, click here.

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Other recent filings from the company include the following:

Additional definitive proxy soliciting materials and Rule 14(a)(12) material - April 20, 2016
NETGEAR releases salary data. CEO sees compensation rise 4% - April 20, 2016
Amendments to Articles of Incorporation or - April 20, 2016
NETGEAR's SVP of Worldwide Sales just disposed of 10,596 shares - April 13, 2016